why fix up anything when we can't recoup costs?

[Bruce M.]

I'm not sure I get it...it seems that there are very few things we can do that actually add value to a fix up project. It seems painting gets the highest rate of return for the cost involved. So why are all these flipping sites and books having us upgrade bathrooms and kitchens and all sorts of stuff if we won't even recoup the costs of these projects? I've looked at many sites that show you what improvements provide the greatest return and there just aren't many improvements that bring in value. Cleaning up the place seems to be the best.

So is the only reason people do all these fixups is because they can't sell the places 'as is' ? What am I missing here . I know this may sound like a stupid question to most but I just don't understand.

Thanks

Bruce 

[Josh C.]

Bruce M. It is confusing to look at the Zillow website and it says a new kitchen costs 30k and increases your home value 26k. However, most flipped homes aren't in ok shape and therefore not sold at "market value." All the flips I've done the houses are bought for cash because they are so bad you can't get financing. So you get a house in a 150k neighborhood for 40k cash and then you have plenty of room to redo the kitchen and baths plus put on a new roof. Then sell to a nice first time homebuyer for 150k that doesn't have the cash to buy it as is or the know how.

That's worked for me anyway. I don't see how you could make any money buying an already decent house and hiring people out of the yellow pages to upgrade everything.

One final thing. People do lose money flipping. I personally know several people you have (one lost 100k and he's even a real estate agent) definitely not guaranteed. It's not like the TV shows.

Good luck!